The draw for the 2017 Dr. McKenna took place in Belfast on Wednesday evening.
Donegal have been drawn in Group C along with neighbours Tyrone, Cavan and University Ulster Jordanstown.
It means Rory Gallagher, a former Kilcar Manager will put his Donegal side against current Kilcar boss Martin McHugh who is in charge of the Jordanstown students, a side which includes Ryan McHugh and Patrick McBrearty.
Tyrone will get the year of by targeting a sixth McKenna Cup title in a row.
The rest of the draw seen Derry placed in Group A with Queens, Armagh and Down while Group B will be made up of St. Mary's, Antrim, Fermanagh and Monaghan.
The group games will be run off on Sunday 8th, Sunday 15th and Wednesday 18th January.
In the semi finals, the winner of the Donegal Tyrone group will play the best runner up and the winners of A and B will face off. Those games will be played on Sunday 22nd with the final to be played on Saturday 28th.